Canadian Central Bank Calling For Stablecoin Regulation
The Bank of Canada, the country’s central bank, is urging federal and provincial regulators to develop a comprehensive stablecoin regulatory framework. This framework aims to modernize Canada’s payment system and prevent it from lagging behind international counterparts.
According to Ron Morrow, Executive Director of Payments, Supervision and Oversight at the Bank of Canada, individuals “will get run over sitting on the right track.” He presented these remarks at the Chartered Professional Accountants conference in Ottawa.
Morrow emphasized that for stablecoins to function as money, they must be safe and stable, akin to traditional bank balances. Governments worldwide are actively regulating stablecoins and other cryptocurrencies to ensure consumer protection while enabling innovation.
Stablecoin Summer and Global Adoption
This call comes amid the so-called “stablecoin summer”, a resurgence in interest accelerated by the GENIUS Act in the United States, which helped set the stage for widespread stablecoin adoption.
Currently, US dollar-pegged tokens dominate the stablecoin market. Canada aims to establish domestic regulations to ensure both market security and innovation.
Also Read : London Stock Exchange Launches Platform for Private Funds Using Blockchain
CBDC Plans Put on Hold
In 2022, Canadian banks and MIT collaborated to create a central bank digital currency (CBDC). However, projects slowed as focus shifted toward building a real-time payment system capable of instant fund transfers.
A survey by the Bank of Canada found that 42% of Canadians view CBDCs positively, while 20% are skeptical or strongly oppose them. Critics argue that CBDCs could threaten open, permissionless finance and potentially pave the way for a surveillance state.
The Road Ahead
Morrow’s comments highlight Canada’s commitment to building a safe and competitive digital payments ecosystem. Implementing a clear stablecoin regulatory regime would protect consumers and reinforce Canada’s position as a global leader in digital finance.
